Learn more about the housing market in Oregon

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying, or selling, it will impact many aspects of your life.  

Key Takeaways

1. Oregon’s housing market has shifted from rapid pandemic-era growth to a more balanced and stable environment heading into 2026.
2. Inventory has improved modestly, easing extreme seller leverage, but affordability remains a major statewide challenge.
3. Mortgage rates and new construction will be the biggest factors shaping buyer activity and price movement in 2026.
4. Demand remains strong in select metros like Portland, Salem, and growing suburban and exurban areas, despite slower price growth overall.

Oregon Housing Market Overview 

Located in the Pacific Northwest, the Beaver State is known for its beautiful outdoors. Oregon is one of the most geographically diverse U.S. states, home to volcanoes, mountains, lakes, deserts, and rocky Pacific coastlines, known especially for famous attractions like Mount Hood, Crater Lake, and Cannon Beach. Its natural features and outdoor adventuring are one of Oregon’s primary attractive forces for both visitors and prospective homeowners. 

Oregon’s economy remains a major draw for residents and homebuyers going into 2026. While historically rooted in forestry, fishing, and agriculture, the state’s economy is now driven by technology, manufacturing, trade, tourism, and outdoor recreation. Oregon’s West Coast location continues to support international trade, particularly with Asia. According to the U.S. Bureau of Labor Statistics, Oregon fully recovered pandemic-era job losses by 2023 and continued adding jobs through 2024–2025, reflecting a stable labor market that supports housing demand.

That economic strength continues to influence Oregon’s housing market, though conditions have shifted since the pandemic peak. By late 2025, Oregon’s market showed higher inventory and slower price growth compared to 2021–2022, but competition remains strong in certain metros. Redfin data shows homes in the Portland metro still sell faster than the national average, with select suburbs and exurbs remaining highly competitive despite easing bidding wars statewide.

Affordability is Oregon’s biggest housing challenge going into 2026. Rising home prices over the past decade, combined with limited housing supply, have kept affordability strained across much of the state. In response, Oregon has expanded statewide land-use and zoning reforms to increase housing density, including middle-housing and multifamily development. According to the Oregon Department of Land Conservation and Development, these reforms are intended to boost housing supply without fully dismantling environmental protections, though results are expected to materialize gradually rather than immediately.

Oregon Housing Market Trends 

To understand the Oregon real estate market, it’s important to keep up with trends. Let’s look at some key ones in Oregon: 

Note: These statistics are based on Redfin’s monthly housing data from November 2025. 

Median Home Price 

The median sales price for homes in Oregon is $507,600, up 1.0% since last year according to Redfin’s monthly housing data for November 2025. Although Oregon’s prices aren’t as high as homes in many California markets, this higher-than-average median falls in track with the other West Coast states. Portland’s median sales price is similar, currently at $515K. 

Number of Homes Sold in November 2025

3,403 homes sold in Oregon in November of 2025, down from 3,698 homes sold in November of 2024. This metric gives us a good picture of the current sales volume in Oregon. However, keep in mind that number might be not be as inflated compared to other months since nationally speaking, sales usually peak during the spring and summer months and slow in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%. 

Median Days on Market (DOM) 

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. A higher DOM signals a buyer's market as sales are slower and sellers have less leverage. 

The current median DOM in Oregon is 55 days in November 2025. This means Oregon homes sell after almost two months on average after being listed. This relatively low DOM indicates a competitive seller’s market in Oregon currently. 

New Supply Statistics 

Housing supply in Oregon has improved since the pandemic peak, though it remains constrained relative to demand. According to the U.S. Census Bureau’s Building Permits Survey, residential permitting in Oregon declined from its 2021 and 2022 highs, but remained relatively strong compared to many states throughout 2025. This steady level of new construction has helped modestly expand inventory and reduce extreme seller leverage, though it has not been sufficient to fully resolve affordability pressures. As Oregon inches towards 2026, increased supply is expected to continue easing price growth rather than driving outright price declines.

Property Tax Rate 

The average property tax rate in Oregon is 0.93%, according to Rocket Mortgage. This places Oregon’s average property tax rate as the 28th lowest in the U.S., about average compared to other states. However, keep in mind that property taxes vary widely depending on the specific county of Oregon and the value of the home. 

Foreclosure Rate in Q1 of 2025 

In the first quarter of 2025, Oregon recorded 501 foreclosure filings, or roughly 1 filing per 3,670 housing units, according to ATTOM. This represents a 7.2% decrease quarter over quarter and a 1.4% increase year over year, placing Oregon well below the national average and ranking 43rd nationwide for foreclosure activity.

Hottest Local Markets in Oregon 

Oregon features many vibrant, diverse housing markets. Below we review a few of the top markets for homeownership and real estate investing in 2026.

1. Portland

Portland is famous for everything from donut tours to the largest bookstore in the world. It’s also a great place for real estate investing. AAfter rapid appreciation during the pandemic, Portland’s housing market cooled through 2024 and into 2025, moving closer to stabilization rather than sharp correction. As of November 2025, the median home sale price in Portland sits around $515,000, with prices largely flat year over year as higher inventory and longer days on market give buyers more leverage

Portland is also an ideal location for short-term rental properties, as it receives plenty of tourism throughout the year and is also close to booming resort towns near Mt. Hood.

2. Salem

Salem, the state capital, is one of the fastest growing real estate markets in Oregon in 2026. The city’s central location, within driving distance of both the coast and mountain see resorts, makes it an ideal location for long-term rental property investing. Properties spend 65 days on average on the market, and rent prices are trending upward as well.

3. Aurora

This town, located in Marion County in Northwest Oregon, is another great option for real estate investing. The current median home sale price in Aurora is $645,000, stabilizing at the same number since this time last year. Aurora has seen substantial population growth over the past few decades and is expected to continue to attract new buyers interested in high value homes located in a more rural setting. in 2026.

Economic Factors Impacting the Oregon Housing Market 

A holistic view of Oregon’s housing market requires a basic understanding of the main economic drivers affecting the market. Let’s look at a few critical ones below: 

Mortgage Rates 

High mortgage rates are a continuing challenge for would-be homeowners in the U.S. Oregon’s average rates for 30-year mortgages in November of 2025 are close to the national average at 6.13%. Higher interest rates deter borrowing and discourage those who already own homes from putting their homes on the market. Many homeowners report feeling “locked in” to their current homes, as it is unlikely they will secure a mortgage rate as low as their current one on their next property. Prospective buyers in Oregon should monitor mortgage rates in the coming months for a better understanding of how they impact the housing market. 

Inflation and Cost of Living 

Mortgage rates are tied to inflation, another massive contributing factor to the affordability of housing and the state of housing markets in general. Inflation has increased the cost of living for many across the U.S., including in Oregon. This means fewer people can truly afford to limit housing costs to less than 30% of their monthly income. 

Population Changes and Demographics 

Population trends, employment, and migration each affect the housing market. In Oregon, the unemployment rate is currently 5.20%, notably higher than the national unemployment rate. Additionally, the state approximately breaks even when it comes to in-migration and out-migration due to push and pull factors like prices and opportunity. Homeowners and investors should continue to monitor Oregon’s population changes and demographics for future insights about how these factors affect the housing market. 

Oregon Housing Market Forecast 

As of 2025, Oregon’s housing market has largely shifted from rapid appreciation to stabilization rather than a sharp correction. According to Redfin and Zillow data, price growth has flattened across much of the state as inventory has improved and bidding wars have eased compared to 2021 through 2023. Demand remains present but more rate-sensitive, and further market activity heading into 2026 will depend heavily on mortgage rate cuts and the pace of new construction, which has begun to modestly expand supply without fully resolving affordability pressures.

Likelihood of Oregon Housing Market Crash  

Due to high demand for properties in the state, a housing market crash in Oregon is unlikely. The 2008 housing market crash was preceded by a slowing market and decrease in demand. These conditions are not seen in Oregon currently, where market activity is high and appreciation is steady. 

Forecast for The U.S. Housing Market 

Now that we’ve looked at Oregon’s housing market, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years? 

The United States' current median existing-home sale price is around $415,200 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 3 months, keeping conditions constrained.

We’re currently in a seller’s market with buyers looking at continued rising house prices—although they are rising at a slower pace compared to previous years.. The same trend can be seen with renters. Housing continues to appreciate, in general.

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In 2026, he predicts that existing home sales will rise an additional 13%. Yun expects mortgage rates to stabilize at the lower end of the current 6-7% range through 2025 and 2026 as the Federal Reserve continues gradual rate cuts. There's an anticipation of a more balanced market in the coming years, with moderate price growth and a greater amount of Americans re-entering the market.

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth.

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Year-to-date single-family housing starts were down about 7.1% in 2025, whereas starts for buildings with five or more units were up roughly 14.5% Higher mortgage rates and inflation (affecting price of materials) were the main causes.

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. According to the National Association of Home Builders, approximately 74.9% of U.S. households were unable to afford a newly built median-priced home in 2025. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come.

Oregon Rental Market 

The rental and buying market are obviously closely linked. When home prices fall, landlords are more likely to buy properties to rent out. Home prices and rental prices are correlated as well because a hot market means prices rise.  

Rents were more unaffordable than ever in 2021 and 2022. In 2022, 22.4 million households paying rent said it was unaffordable, which is the highest that figure has ever been, according to a January report from the Joint Center for Housing Studies at Harvard University. The study found that half of all renters in the United States spent over 30% of their income on rent and utilities.  

Rental markets cooled after 2023 as new multifamily units came online and demand softened, but the core issue remains unresolved. Through 2025, rent growth has slowed, yet incomes have not kept pace enough to restore affordability. As a result, rent increases continue to outpace wage growth for many households heading into 2026.

The pandemic caused a housing disparity that isn’t going away anytime soon. Unaffordable housing is a serious issue across America. Whether high rents or low income is the main cause doesn’t change the fact that this problem is widespread.  

This short summary leads directly into Oregon’s current rental market, with key trends below from Zillow: 

Oregon Rental Market Key Trends 

• Median rent: $1,807

• Month-over-month rent change: -$43

• Year-over-year rent change: +$7

• Available rentals: 9,788

Conclusion 

The Oregon housing market in 2025 reflects a shift toward greater balance after years of volatility, with moderating price growth, improving inventory in some metros, and steadier buyer demand. As Oregon moves into 2026, it remains essential for buyers and sellers to stay informed about evolving market conditions. Factors such as home price trends, inventory levels, mortgage rates, and affordability pressures will continue to shape decision-making across Oregon’s real estate market.

FAQs

Is Oregon’s housing market a buyer’s or seller’s market in 2026?

Oregon is closer to a balanced market than in recent years, but conditions still lean slightly toward sellers in competitive metros. Buyers generally have more negotiating power than during the pandemic peak, though well-priced homes still move quickly.

Will home prices in Oregon go down in 2026?

Widespread price declines are unlikely. Most forecasts point to flat or modest price growth as inventory improves and demand becomes more rate-sensitive rather than overheated.

Is Portland still a good market for buyers or investors?

Yes, but for different reasons than during the boom years. Portland has shifted toward stabilization, offering buyers more leverage and making it more attractive for long-term and income-focused investors rather than rapid appreciation plays.

How are mortgage rates affecting Oregon homebuyers?

Mortgage rates remain a key constraint on affordability. Many homeowners are “locked in” to lower rates, limiting supply, while buyers are closely watching for rate cuts that could increase purchasing power in 2026.

What is the biggest risk facing Oregon’s housing market?

Affordability remains the primary challenge. Even with slower price growth and increased supply, housing costs continue to outpace income growth for many residents, keeping pressure on both renters and first-time buyers.